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Taberet,a German Company,has an Argentine Marketing Subsidiary That Complains That

Question 91

Multiple Choice

Taberet,a German company,has an Argentine marketing subsidiary that complains that export price escalation makes Taberet products too expensive to sell in Argentina.The subsidiary wants Taberet to adjust the transfer price to Argentina.What should Taberet do about the transfer price?


A) Decrease it.Transportation costs will decrease.
B) Decrease it.Tariff costs will decrease.
C) Decrease it.Transport and tariff costs will both decrease.
D) Do nothing.Transfer prices do not affect either transport or tariff costs.

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